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TruScreen narrows 1H loss as tax credit offsets falling sales

Monday 14th December 2015

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TruScreen, the NZAX listed cervical cancer test developer, narrowed its first half loss after a decline in sales was countered by a refundable tax offset.

The net loss was $352,000, or 0.2 cents per share, in the six months ended Sept. 30, from about $491,000, or 0.4 cents, a year earlier, the Auckland based company said in a statement. Sales dropped 26 percent to $306,000. Three major customers each contributed more than 10 percent of sales in the first half, with one customer providing 56 percent of revenue. 

Still, the company's other income rose to $861,00 from $36,545 a year earlier. Of that, some $595,000 came from TruScreen's 45 percent refundable tax offset, and $256,000 from foreign exchange gains.  

In October, the company reduced its annual sales forecast, citing the delayed launch of its new product, TruScreen Ultra. The hold-up in rolling out its product by several months reduced first-half sales, and will flow into annual revenue, which will be below the $10.6 million forecast in the company's listing disclosure document.

"The design and certification process has taken longer than originally expected, however, we have now completed the final audit for CE Mark certification and are waiting for final approval," chief executive Martin Dillon said today.

The company said its "limited revenue to date" was obtained from distributors in anticipation of regulatory approvals. It expects increased distribution and revenue when those are granted, concentrated in Asia, Europe, and Central and Southern America. 

"Our focus in the six-month period has been to build acceptance and use of our TruScreen technology, particularly in the $1 billion Chinese market which remains our primary focus," Dillon said

"Our Chinese distributor has been continuing to place consoles in hospitals. As previously advised to the market, we have also entered into two significant screening programmes in China, which have now commenced and which aim to screen up to 230,000 women over the next 15 months."

The NZAX listed shares last traded at 27 cents, and have climbed 89 percent this year.

 

 

 

 

BusinessDesk.co.nz



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